SAP Announces Preliminary Fourth Quarter And Full Year 2015 Results

Tremendous Momentum in New Cloud Bookings – Up 103% in the Full Year

Cloud Subscriptions and Support Backlog, A Lead Indicator for Continued Strong Cloud Growth, Increased 45%, Reaching €3.7 Billion at Year-End

Full Year Non-IFRS Cloud Subscription and Support Revenue Up 109% to €2.30 Billion (€2.00 Billion at Constant Currencies, Achieving Company Guidance)

Full Year Non-IFRS Cloud and Software Revenue Up 20% (12% at Constant Currencies, Beating Company Guidance)

SAP S/4HANA Adoption Surges – More Than Doubling the Number of Customers in the Fourth Quarter, Now Exceeding 2,700 Customers

Full Year Non-IFRS Operating Profit Up 13% to €6.35 Billion (€5.903 Billion at Constant

Currencies, Beating Company Guidance)

Targeting Up to €4.0 Billion Non-IFRS Cloud Subscriptions and Support Revenue By 2017

SAP SE today announced its financial results for the fourth quarter and full year ended December 31, 2015.

SAP had exceptional momentum in the fourth quarter with fast growth in cloud and double-digit growth in its core license business. For the full year, non-IFRS cloud and software revenue grew by 20% or 12% at constant currencies and exceeded the outlook of 8% – 10% growth at constant currencies. New cloud bookings, the key measure for SAP’s sales success in the cloud, increased 103% in the full year to €883 million and 75% in the fourth quarter to €344 million1. Non-IFRS cloud subscriptions and support revenue was €2.30 billion (€2.00 billion2 at constant currencies, achieving the full year outlook of €1.95 to €2.05 billion at constant currencies). Non-IFRS operating profit was €6.35 billion (€5.903 billion at constant currencies, beating the full year outlook of €5.6 – €5.9 billion at constant currencies).

“Our strength in 2015 shows that the S/4HANA innovation cycle is well underway,” said Bill McDermott, CEO of SAP. “Our completeness of vision in the cloud has distinguished SAP from both legacy players and point solution providers. We beat on cloud and software, we beat on operating income and we are ever confident that SAP will remain a profitable growth business well into the future.”

“Our tremendous 2015 results validate our strategy of innovating across the core, the cloud and business networks to help our customers become true digital enterprises”, said Luka Mucic, CFO of SAP. “We have transformed our company and made it leaner by shifting investments from noncore activities to strategic growth areas enabling us to capture the tremendous growth opportunities in the market. This puts us on a strong path for the future reflected in an increase of our 2017 ambition.”

BUSINESS HIGHLIGHTS IN THE FOURTH QUARTER 2015SAP S/4HANA Adoption Soars, More Than Doubling in the Fourth Quarter

SAP S/4HANA is the next generation business suite and the “nucleus” around which businesses can operate all their processes in real time and seamlessly integrate their enterprise and their external ecosystem to enable successful business outcomes. Customer adoption of SAP S/4HANA continues to accelerate sharply, with more than 2,700 customers across all regions and industries at the end of 2015, more than doubling quarter over quarter. S/4HANA is also catalyzing broad customer adoption of our entire innovation portfolio. For example, Merck is turning to S/4HANA for fast data access, enhanced user experience, and productivity through simplified business processes.

Human Capital Management Shows Strong MomentumCustomers are increasingly turning to SAP to manage their global workforce, both permanent and flexible. The customer count for SuccessFactors Employee Central, which is the core of our Human Capital Management offerings, surpassed 1,000 for the first time in the fourth quarter. SAP is winning against its key HCM competitors, especially in markets outside of the United States. For example, Lufthansa selected SAP SuccessFactors. SAP’s innovations in HCM will further increase SAP’s differentiation and drive market share gains.

Customer Engagement and Commerce Drives Triple-Digit Bookings GrowthSAP saw excellent growth in its Customer Engagement and Commerce solutions. Customers build a new, more personalized relationship with their consumers, making it richer and more contextual across all channels. SAP is unique because it also enables businesses to connect the front and back office in real-time and fulfill ecommerce in one end-to-end value chain. New cloud bookings for Customer Engagement and Commerce saw triple-digit growth in full year 2015.

Strong Growth in Business NetworksSAP is leading the charge to a hyperconnected world. SAP Business Network Group comprises Ariba, Fieldglass and Concur – providing the common attributes of a rich open platform and a large ecosystem of customers, suppliers, partners and developers delivering ever expanding content and innovation. New cloud bookings for the business network increased 187% in the full year to €309 million.

Approximately 2 million connected companies trade over $740 billion of commerce3 on the Ariba network, more than 32 million end users process travel and expenses with Concur and customers managed over 1.9 million flexible workers in approximately 130 countries with the Fieldglass platform over the past 12 months.

Regional Performance – Double-Digit Growth Across All Regions in Cloud and Software RevenueThe EMEA region had an outstanding performance in the fourth quarter, with an 11% increase in non-IFRS cloud and software revenue including a strong double-digit software license performance in Germany and Russia. Non-IFRS cloud subscriptions and support revenue in EMEA grew by 53% with very strong double-digit growth in new cloud bookings.

The Americas region had strong double-digit growth, with non-IFRS cloud and software revenue rising 27% including a strong software revenue performance in the U.S.. Brazil rebounded with a strong double-digit software revenue performance amidst a macro environment that continued to be unstable. Non-IFRS cloud subscriptions and support revenue in the Americas region grew 89% with new cloud bookings growing in double-digits.

The APJ region was back to solid double-digit growth in the fourth quarter with non-IFRS cloud and software growth of 18% including strong double-digit software revenue growth in Australia and India. Non-IFRS cloud subscriptions and support revenue in APJ grew 55%. The Company saw exceptional momentum in new cloud bookings and grew in triple-digits.